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Basis of National Health Reform funding – Commonwealth 2012-13

For 2012-13, the Commonwealth is providing funding to each state and territory equivalent to the amount that would otherwise have been payable through the former National Healthcare SPP (clause A32). This amount is divided into the following funding streams:

An amount for public health activities calculated as the sum of amounts identified under the Agreement relating to national public health, youth health services and essential vaccines (service delivery) in 2008-09 ($244.0 million), indexed by the former National Healthcare SPP growth factor.

A proportion of the total amount for hospital services to patients in public hospitals funded through block grants and in respect of teaching, training and research functions funded by states and territories undertaken in public hospitals, with the distribution of funds between these block funded elements based on state and territory advice.

The residual amount is divided between the following interim Activity Based Funding (ABF) service categories based on state and territory National Weighted Activity Unit (NWAU) (12) service estimates for the following:

Emergency department services

Acute admitted public patients

Acute admitted private patients

Non-admitted patient services

Subject to further adjustments for cross-border arrangements, the residual amounts at step 3 represents the funds available for Commonwealth ABF funding for each state or territory.